Starting on January 1, 2013 the amount eligible for contribution to your FSA account will be considerably lower than in the past.  A mere of $2,500.00 as opposed to no maximum contribution limit in previous years. However, many employers set a limit under $5,000.00.

HSAs are facing fewer changes due to the Health Care Reform Bill, but the penalty for using funds for non-medical expenses before the age of 65 has doubled from 10% to 20%. The HSA minimum deductible will rise to $2,500 for family and $1,250.00 for individual coverage in 2013. Maximum HSA contributions for 2013 will be $6,450 for family, and $3,200 for individuals, and additional $1,000 would be allowed for individuals over the age of 55 allowing a total of $7,450.

What is the difference between FSAs and HSAs?

Flexible Spending Account (FSA): An account that allows employees to set aside pretax dollars for expense such as childcare and over-the-counter medications (prescribed by your doctor). With an FSA account, any monies deposited into the account that are not used by the end of the year will then be forfeiting, use care when selecting your FSA annual budget.

Health Savings Account (HSA): A high deductible medical insurance policy is obtained, and a health savings account is established. Policies that are compatible with HSAs cost  significantly less. In turn, they also pay out less than a traditional health insurance policy. Employee dollars saved in premiums will then fund their HSA on a pretax basis. These funds may then be used to pay for eligible out-of-pocket medical expenses. HSA balances roll over from year to year, and you can use the account even if you switch jobs.